18 Questions
What is the main focus of internal auditors in verifying the operation or program under review?
Checking if the operation is likely to achieve its objectives
Which type of evidence consists of verbal or written statements given by someone as proof in internal audits?
Testimonial evidence
What do internal auditors do with deviations and concerns identified during their reviews?
Communicate them through audit reports
In internal audits, when might anyone being audited be asked to provide testimonial evidence?
During interviews about various topics
What is the purpose of gathering evidence in auditing processes?
To support work and persuade others of satisfactory conditions
What types of procedures must internal auditors substantiate their work, conclusions, and opinions on?
Facts or information supporting their beliefs
What is a common behavior that may be displayed by individuals being observed during audits, similar to social desirability bias?
Overreporting positive behaviors
What is a risk associated with behavior modification during audit observations, as mentioned in the text?
False negatives
What is a key reason auditors should be cautious about behavioral changes when observing working conditions?
To obtain reliable information
Which of the following is NOT mentioned as a type of document that auditors commonly review for evidence?
External nonfinancial documents
What is one purpose of auditors examining documents during an audit?
To verify transaction details
Why is it crucial for auditors to be aware of the possibility of false negatives during behavior modification observations?
To obtain reliable information
What is one of the procedural techniques mentioned in the text that an auditor can use to assess control design and effectiveness?
Simulation
Why is asking open-ended questions considered more effective during an audit?
To elicit detailed descriptions or explanations
What is a common reason for mistakes in performing controls mentioned in the text?
Lack of knowledge
Why is it important for an auditor to understand where errors or fraud may occur in a process?
To identify weaknesses and recommend improvements
In operational auditing, what additional aspect should auditors examine besides the step-by-step processes?
Instances of management override
Which approach is recommended in operational auditing to gain a more detailed understanding of how work gets done?
Dynamic approach instead of checklist reading
Learn about the different types of audit evidence that internal auditors use to verify conditions and procedures. Understand how deviations and concerns are communicated through audit reports, and how auditors substantiate their conclusions with facts and information.
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